Hey guys ..
I had the chance to use the Canon EOS Rebel T1i today.. Used it at my family's baby shower and took some pretty good shots just messing around with the modes. My brother in law has one and I really like it.. It's comfortable in my hands pretty easy to start off with too. It's in my budget too. I think this one or the g12 is the one i want to get. Thanks for the great suggestions guys...
No, the t1i doesn't meet your video requirements. Find someone who has a broken Canon point and shoot, get it, use the canon loyalty program (20% of refurb prices) and get a t2i. The camera is light years ahead of the t1i. It has the same sensor as the 7D and can be Magic Lanterned into better video adjustability. If you are going with a Canon DSLR, going with anything under a t2i is a major mistake.